Seizure of Chenglin and Yochow Accompanied by Firing on British and American Gunboats News' received from the Yangtze indicates that a strong Communist movement is developing in northern Hunan, in the vicinity of the Tungting Lake.
It looks as if the region between Yochow at the head of the Tungting Lake and Shasi, half way to. Ichang, on the Yangtze were in danger of falling under Communist control. Instead of the ordinary red flag which so-called Bandit-Communists are in the habit of flying, these people are now displaying the flag with the hammer and sickle device.
It transpires that the Ewo launch} Shan Wo has been burned to tho} edge, while three British and one American have been fired upon. One American has been killed and two British blue-Jackets wounded: M.S. Bee has} bee i inst the Com seized the Customs funds at Cheng-munists, said to_have Tin, The railway line between Changsha and Wuchang is reported to thave been cut in 18 places, The Communist movement appar-took definite shape on July 3, when the Red forces advance on Chenglin which is on the Yangtze fand acts as the port for Yochow, a short distance away at the head of the Luke, First of all the Com-imuuists seized Chenglin, where the Customs funds were carried off and the Chinese officials held for ransom. While approaching the anchorage on this day, H.MS, Teal was heavily. fired upon by the Communists, and was slight but the other believed to be serious.
It wus shout this time that the Ewo Ininch Shun Wo was seized. She is used for towing lighters to ports in the vicinity. Apparently first the Iaodah escaped and ther when the vessel took fire, the remainder of the crew who' reported one of the British men-of-war in the vicinity.
H.MS, Bee, the: flagship of Re Admiral MeLean, and H.M.S. Scarab, which had proceeded to the scene of action, were next fired upon, and the Bee returned the fire, apparently-with effective results.
The US.S. Guam w spot, and it is learned hor crew was killed the Communist shooting. a result vf "No foreigners were at Chenglin when the place was seized by the Communists.
The "Remnants" Reduced Nanking, July 2. The military campaign in Hunan Tronsides and Kuang:
deen decisively defeated, Military Headquarters annoureed' to-night.
An urgent telegram from the Ht-
follows:
front Jost received reports a three days' battle at Heng-Jchow, southern Hunan, the Ironsides and their Kuangsi allies were decisively overwhelmed by the Government armies from Kuangtung. Both] sides suffered severely.
After being foiled in their recent attack on Hengchow owing to the Cantonese troops pressing close of their heels, the combined enemy forees suddenly turned at bay and] attacked their pursuers with ¢he Jobject of breaking through and] marching swiftly southwards te-wards Kuangtung before the troops from Hupeh could strike at their rear.
The Government troops from Kuangtung, Consisting of three ye" oran. Divisions under General Chiang Kuang-ting, Tsai Ting-kai and Li ¥ang-ching, hastily formed 'a battle line north of the city of Hengchow.
The rebels numbering five sions, composed of the Ironsides division under Chang Fa-kwel, three Kuangsi divisions under Li Chung-fen, Pei Chung-hsi and Huang Shao-hsiung, and a Hunanese division/ repeatedly attacked the entrenchments of the Canton-ith the utmost despera-29 and 30, but they, wore driven, back with terrify slaughter.
Yesterday morning the Cantooese troops counter-attacked and, on the approach of Government troops from Hupeh, the enemy line collapse ed completely.
Remnants of the defeated rebels escaped eastwards towards Kuang-and are being hotly pursued.
The enemy casualties numbered 16,000 while on our side the losses were more than 6,000, including the commander of a brigade, Chang] Sze-teh, who was killed in action, The outcome of this battle is considered' of the utmost importance Decause with the d&bicle of the Tron-sides and the Kuangsi rebel armies, seven veteran Government Divi-us will be released for service in Honan and Shantung—Kuo American Sailor Killed of Kufowhsien, against further al tacks:—Kuo -Min.
Peking, July 7.
There has been no news of fighting for several days.
General Han Fu-chu fs reported to be concentrating his troops at Teingchowfu, nearly 100 miles east of Tsinan, on the Lunghai Railwa: while National Government reinforcements are believed to have reached Yenchow, about eighty miles south of "Tsinan, on the Tientsin-Pukow Railway.
"The {Chinese newspapers here anticipate severe fighiti within four or tige days. ter.
Shahsi "Aetoblanes at Work Hankow, July 6.
Foreign vessels, including gunboats, have been made targets. of bullets frequently fired by the red bandits', who have captured Yochow land Chenglingehi.
Tt is reported that'an American gunboat was fired on by a group of bandits at Yochow with the result that " bluejacket was seriously injured. The gunboat immediate. ly returned the fire and finally silenced the bandits.
'A British gunboat is also stated to have been attacked by bandits at Chenglingchi.-on Jaly 3 with three persons on boat{ believed injured—Rengo.
Washington, July 6.
Tsingtao, July 6.
Te Jocks as if the main fighting in the, Shantung area has broken out with the river Weiho asthe battle line, The fighting commenced at! midnight last night with the support of artillery barrages from both sides.
This morning over one hundred wountled. soldiers.of the troops of General Han Fu-chu were brought to Chinchow for medical treatment. In the meanwhile, Shansi aeroplanes are bombing the area tinder control of General Han Fu-chu.
General Liu Chi is now concentrating his troops, numbering some 5,000, at-Changyu in preparation for an attack in the Tear Weihsien, which is now occupied by the Nanking troops.
In view of the threatening situation at Weihsien, women and chil ren of the Japanese families resi ing at Wethsien "are now being ttanspotted to Tsingtay for refuge. Reno.
The Secretary oot-the Navy, Mr. Charles PF. Adams, has amounted that "the "Commander of the Asiatic Fleet, has reported the death of "Dainiel. Elkin, seaman of the U.SS. Guam.—Elkin was killed when the Guam was fired upon by- Chinese communists near Yochow. The Guam, necordiag to the oficial report, was escorting merchant vessel when the attack took place—United Press.
Threat to Shasi
Text read from the printed page and cleaned; old type leaves the occasional error.